THE NEW DEAL - Chapter 15 AMERICA GETS BACK TO WORK
Franklin D. Roosevelt s perceived as a man of action can-do attitude projected an air of friendliness and confidence knew how to handle the press willing to experiment two-term governor of New York Appeal distant cousin of former president Theodore Roosevelt Results: a landslide for
Situation When FDR Entered Office In March 1933, the country was virtually leaderless, banking system had collapsed 20 th Amendment (Feb. 1933) moved presidential elections from March to January did not apply (to avoid lame duck issues) Inaugural address, The only thing we have to fear is fear itself.
3 Goals of the New Deal Relief: for the needy, provided jobs for the unemployed, protected farmers from foreclosure Recovery: economic, get the economy back into high gear Reform: financial, to regulate banks, abolish child labor, conserve farm lands
Two New Deals 1 st New Deal (1933 1935) Focused primarily on Relief and Recovery 2 nd New Deal (1935 1938) Focused primarily on Reform Changing the role of government
First Hundred Days March 9 June 16, 1933 Congress passed more than 15 major pieces of New Deal legislation Significantly expanded the federal government s role in the nation s
FDR S PHILOSOPHY: PUMP PRIMING MONEY SHOULD BE INVESTED IN THE PEOPLE, THE WORKING CLASS. SPENDING WOULD THEN INCREASE WITH NEW MONEY IN CIRCULATION. AS SPENDING INCREASED IT WAS EXPECTED THAT BUSINESS WOULD EXPAND TO MEET THE NEW DEMAND AND HIRE NEW WORKERS. THIS WOULD BRING ON MORE SPENDING AND MORE GROWTH. 8
OPPOSITE PHILOSOPHY: SUPPLY SIDE OR "TRICKLE DOWN" ECONOMICS IN THIS PHILOSOPHY MONEY WAS TO BE INVESTED AT THE TOP, IN BUSINESS. THEN BUSINESSES WOULD EXPAND, HIRE NEW WORKERS AND THIS IN TURN WOULD SPUR ON SPENDING AND FURTHER ECONOMIC GROWTH. 9
Fireside chats radio talks about issues of public concern; explained New Deal; Americans felt like FDR was speaking directly to them
Prohibition Repealed - 1933 In order to raise government revenues by taxing alcohol; 21 st Amendment passed
First: Help Banks Recover First order of business was to get the banking system in order On March 5, one day after taking office, FDR declared a bank holiday He persuaded Congress to pass the Emergency Relief Act, which authorized the Treasury Department to inspect the nation s banks
FDR CLOSED THE BANKS FOR SEVERAL DAYS, A BANK HOLIDAY TO AVOID PANIC. THEY OPENED A FEW DAYS LATER AND THE SITUATION HAD CALMED. A BANK PANIC WAS WHEN PEOPLE CANNOT GET THEIR MONEY BECAUSE THE BANK WAS CLOSED 13
Gaining Confidence in Banks Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation The FDIC insured account holders up to $5,000 and set strict standards for banks to follow (today = $250,000)
Programs That Put People to Work (Relief) PWA: Public Works Administration Provided $4 billion to state govt s to build schools, roads, improving highways, etc. CCC: Civilian Conservation Corps Put young men (18 24) to work Workers sent a portion of income back to families Environmental work: planting trees, building parks, etc. TVA: Tennessee Valley Authority Goal: reform utility power in Tennessee Building of dams helped provide jobs and hydroelectric power WPA: Works Progress Administration Employed 9 million workers Built roads, bridges, building, etc. Employed 40% of nation s employees
TVA: TENNESSEE VALLEY AUTHORITY TVA TODAY 16
More Relief FHA Federal Housing Administratio n provided home loans, home mortgages and repairs Repaired business in Childersburg, Alabama
More Relief FERA Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans Citizens wait outside a FERA in Calipatria, CA for relief checks
CIVIL WORKS ADMINISTRATION (CWA) THE CWA WAS SET UP TO PUT 4,000,000 MEN AND WOMEN TO WORK AS SOON AS POSSIBLE. 400 MILLION DOLLARS OF PUBLIC WORKS FUNDS WERE PROVIDED. 19
CWA JOBS VARIED, FROM DIGGING NEW SEWER SYSTEMS TO LEADING EXERCISE SESSIONS FOR SCHOOL CHILDREN 20
Recovery Programs AAA: Agricultural Adjustment Act Sought to remedy overproduction of crops Paid farmers NOT to grow crops Supreme Court overturned it in Butler v. US NIRA: National Industrial Recovery Act Allowed president to set codes for industries (prices, working hours, etc.) Section 7a allowed unions to collectively bargain Declared unconstitutional in Schechter Poultry v. US National Youth Administration Provided job training for unemployed young people and part-time jobs for needy students. Grants given to high school and college students in exchange for work.
Social Security: Provided unemployment insurance Pensions for retired workers Wagner Act: Or (NLRA) National Labor Relations Act HUGE boost for unions Allowed unions to collectively bargain Inspired CIO led by John L. Lewis sit down strike FDIC: Guaranteed bank deposits up to $5,000 Restored faith in banks SEC: Reform Programs Sought to protect stock market from fraud
SOCIAL SECURITY ACT One of the most important achievements of the New Deal era was the creation of the Social Security System The Social Security Act, passed in 1935, had 3 parts: 1. Old-Age Pension 2. Unemployment compensation 3. Aid to families with dependent children & disabled (welfare)
FRANCIS PERKINS WAS AN IMPORTANT PLAYER IN THE CREATION OF THE SOCIAL SECURITY ACT IN 1933, FDR APPOINTED MS. PERKINS AS HIS SECRETARY OF LABOR. MAKING HER THE FIRST WOMAN TO HOLD A CABINET POSITION IN THE UNITED STATES. AS SECRETARY OF LABOR SHE PLAYED A KEY ROLE WRITING NEW DEAL LEGISLATION, INCLUDING MINIMUM WAGE LAWS. 24
CONGRESS PROTECTS WORKERS In 1938, Congress passed the Fair Labor Standards Act which set maximum hours at 44 per week and minimum wage at 25 cents per hour
Concerns with the New Deal policy of deficit spending (spending more money than the government receives in revenue) FDR felt it was a necessary evil - only to be used at a time of great economic crisis supported by British economist John Maynard Keynes
Court Packing Plan FDR sought to influence the Supreme Court His plan? For every judge over 70 that does not retire, he could appoint a new one This would allow him to appoint up to six new judges This NEVER happened due to public (and government) outcry Fear of FDR being a dictator
CRITICS EMERGE Despite the renewed confidence of many Americans, critics from both political spectrums emerged Liberals (left) felt FDR s program was NOT doing enough Conservatives (right) felt that government intervention was TOO much and interfered with our free market economy
Criticisms of Conservative Opponents American Liberty League felt New Deal violated respect for and rights of individuals and property added to the national debt ($35 billion) wasted money on relief and encouraged idleness violated the Constitution & States rights increased power of the Presidency
Killed by Dr. Carl Weiss at a rally Senator Huey Long (Louisiana) an early supporter of the New Deal turned against FDR planned to run for president advocated a Share-Our-Wealth plan guaranteed annual income of at least $5,000 for every American to be financed by confiscating wealth of people who made over $5 million per year Slogan: Every Man a King! Very popular 1935 claimed 7.5 million members of Share-Our-Wealth clubs
Father Charles E. Coughlin Anti-Semitic views led to downfall radio priest from Detroit combined economic, political and religious ideas favored a guaranteed annual income wanted nationalization of banks claimed there was an international bankers conspiracy and Jews were responsible
Dr. Francis E. Townsend an elderly physician from CA felt FDR s plan didn t do enough for poor and elderly created a pension plan for the federal government to pay $200 per month to unemployed people over 60 plan financed by a 2% national sales tax and each pensioner would be required to spend the money in 30 days; stimulating the
FDR EASILY WINS 2 ND TERM The Republicans nominated Alfred Landon, Governor of Kansas, while the Democrats (of course) nominated Franklin Delano Roosevelt Again the Dems and FDR won an overwhelming victory in the presidential election and in both houses
First Lady Eleanor Roosevelt helped women gain higher political positions during the New Deal Eleanor was influential in her role as advisor to the president Frances Perkins became America s first female cabinet member (Labor) Eleanor & Franklin
AFRICAN AMERICANS GAIN POLITICAL Status FDR appointed over 100 African Americans to positions within the government Mary McLeod Bethune headed the division of Negro Affairs of the NYA Despite these gains, FDR was never fully committed to Civil Rights Bethune
NATIVE AMERICANS MAKE GAINS Native Americans made advances during the 1920s & 1930s Full citizenship granted in 1924 The Reorganization Act of 1934 gave Natives more ownership of reservations Policy was moving away from assimilation towards autonomy
SECTION 4: CULTURE IN THE 1930s Movies provided an escape from the hardships of the Great Depression MOVIES: By the late 1930s, 65% of Americans were attending the movies at least once per week at one of the nation s 15,000 movie theaters Comedies, lavish musicals, love stories and gangster films dominated the movie industry
FAMOUS FILMS OF THE 30s One of the most famous films of the era was Gone with the Wind (1939) Other notable movies of the era included The Wizard of Oz (1939) and Snow White and the Seven Dwarfs (1937)
FAMOUS RADIO MOMENTS Orson Welles created a radio special called War of the Worlds It was an epic drama about aliens landing in America Unfortunately, many thought it was a news broadcast and panicked
LIVE NEWS COVERAGE Radio captured news as well as providing entertainment One of the first worldwide broadcasts was the horrific crash of the Hindenburg, a German (blimp), in New Jersey on May 6, 1937 Such immediate news coverage became a staple in society The Hindenburg caught fire and was utterly destroyed within a minute Of the 97 people on board, 13 passengers and 22 crew-members were killed
ART DURING THE GREAT DEPRESSION The Federal Art Project (branch of the WPA) paid artists a living wage to produce art Projects included murals, posters and books Much of the art, music and literature was sober and serious WPA Art Democracy...a Challenge artist, date unknown
Grant Wood American Gothic- One of the most famous pieces of art in 1930s
JOHN STEINBECK American writer John Steinbeck received assistance from the Federal Writers Project He published his most famous book, Grapes of Wrath (1939), as part of the program
LEGACY OF THE NEW DEAL: HOW DID IT CHANGE AMERICA? Increase IN THE POWER OF THE FEDERAL GOVERNMENT INCREASE OF THE ROLE THE FEDERAL GOVERNMENT GROWTH OF EXECUTIVE POWER USE OF DEFICIT SPENDING CREATION OF A WELFARE SYSTEM 46
LEGACIES OF THE NEW DEAL FDIC banking insurance critical to sound economy Deficit spending has became a normal feature of government Social Security is a key legacy of the New Deal in that the Feds have assumed a greater responsibility for the social welfare of citizens since 1935